Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Foreign Direct Investment ADMINISTRATIVE LAW |
Content Type | Text |
Resource Type | Law Order |
Jurisdiction | India |
Act(s) Referred | Foreign Exchange Management Act, 1999 (42 of 1999) |
Case Type | Writ Petition |
Court | Supreme Court of India |
Disposal Nature | Petition Dismissed |
Headnote | ADMINISTRATIVE LAW: Policy of Foreign Direct Investment in Multi-Brand Retail Trading - Held: Under the Constitution, executive has been accorded primary responsibility for formulation of governmental policy - The executive function comprises both determination of policy as well as carrying it into execution - If Government after due reflection, consideration and deliberation feels that by allowing FDI up to 51% in Multi- Brand Retail Trading, country's economy will grow and it will facilitate better access to market for producer of goods and will enhance employment potential, then, it is not open for Court to go into merits and demerits of such policy - On matters of policy, Court does not interfere unless the policy is unconstitutional or contrary to statutory provisions or arbitrary or irrational or in abuse of power - Impugned policy that allows FDI up to 51% in Multi-Brand Retail Trading does not appear to suffer from any of these vices. Policy of FDI - Competence of Central Government - Held: Department of Industrial Policy and Promotion (DIPP) as per Allocation of Business Rules, 1961 is allocated the subject of 'Direct foreign and non-resident investment in industrial and Science projects, excluding functions entrusted to the Ministry of Overseas Indian Affairs - Thus, DIPP is empowered to make policy pronouncements on FDI - Competence of Central Government to formulate a policy relating to investment by a non-resident entity/person resident outside India, in the capital of an Indian company is beyond doubt - Reserve Bank of India is empowered to prohibit, restrict or regulate various types of foreign exchange transactions, including FDI, in India by means of necessary regulations - RBI Regulates foreign investment in India in accordance with Government of India's policy - Allocation of Business Rules, 1961 - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside! India) Regulations, 2000 - Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside. India) (Third Amendment) Regulations, 2012 - Foreign Exchange Management Act, 1999 - ss. 6(3) and 47. Policy of FDI in Multi-Brand Retail Trading - Held: Impugned policy is only an enabling policy and State Governments/Union Territories are free to take their own decisions in regard to implementation of policy in keeping with local conditions - It is, thus, left to choice of State Governments/Union Territories whether or not to implement the policy to allow FDI up to 51% in Multi-Brand Retail Trading. Policy of FDI in Multi-Brand Retail Trading - Objectives of - Discussed. |
Judge | N/A |
Neutral Citation | 2013 INSC 292 |
Petitioner | Manohar Lal Sharma |
Respondent | Union Of India And Another |
SCR | [2013] 2 S.C.R. 1161 |
Judgement Date | 2013-05-01 |
Case Number | 417 |
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